Set to end the day flat after dipping from highs at 4,277

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  • The S&P 500 is down 12.58% for the year.
  • The improved market mood caused a break from the lows but was short lived, trading close to the opening of the session.
  • S&P 500 Technical Outlook: Bias to the downside, but could recover in the short term, followed by further decline.

From the beginning of 2022, the S&P 500 registered a fall of 14.52%, attributed to different factors. First, the Federal Reserve would begin its tightening cycle. Second, the Russian invasion of Ukraine created a crisis in the commodity complex, with oil prices soaring above $100 a barrel; wheat is posting all-time highs, while precious and base metals have seen gains of up to 250%, that’s in the case of nickel.

On Tuesday, the S&P 500 traded at 4,201, down 0.01%, as market sentiment improved, spurred by the announcement that Ukraine will not insist on joining NATO, AFP reported.

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S&P 500 Price Forecast: Technical Outlook

From a technical perspective, the S&P has a bearish bias. The daily moving averages (DMAs) that reside above the price represent the aforementioned, the successive series of lower highs/lower lows, breaking previous support levels and paving the way for further losses.

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During the day the S&P 500 jumped on June 18, 2021, lows around 4164.40, but faced strong resistance on October 4, 2021, support turned resistance at 4276.58.

With the Relative Strength Index (RSI) at 38.20 below the 50 midline signals, the downtrend persists but then a positive divergence forms on the daily chart, which means the index could print an upside. before resuming its downtrend.

That said, the S&P 500 would need a break above 4,276.58. In that case, the next resistance would be at 4,300. A break of the latter would expose a three-month downtrend line and the daily high of March 3 at 4416.78.

If that scenario plays out, due to improving market sentiment, US central bank tightening, elevated inflation levels and technicals will resume the downtrend towards new year-to-date lows.

Additional technical levels

SP500

Panorama
Last Price Today 4195.29
Today’s Daily Change -3.79
Today’s Daily Change % -0.09
Today’s Daily Opening 4199.08
Trends
20 Daily SMA 4375.63
50 Daily SMA 4506.92
100 Daily SMA 4574.8
200 Daily SMA 4476.26
levels
Previous Daily High 4326.2
Previous Daily Minimum 4199.08
Previous Maximum Weekly 4420.17
Previous Weekly Minimum 4277.15
Monthly Prior Maximum 4592.23
Previous Monthly Minimum 4105.11
Daily Fibonacci 38.2% 4247.64
Daily Fibonacci 61.8% 4277.64
Daily Pivot Point S1 4156.71
Daily Pivot Point S2 4114.33
Daily Pivot Point S3 4029.59
Daily Pivot Point R1 4283.83
Daily Pivot Point R2 4368.57
Daily Pivot Point R3 4410.95

Source: Fx Street

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